Is Forex Trading legitimate? – Save the student

If you have seen online videos promoting Forex, you may wonder if it sounds too good to be true. In this guide, we will explain what Forex’s trade is and what scams to take into account.

Credit: Roman Samborskyi, Yurlick, Stefan Balaz – Shuttersock

If you are on social networks, you may have encountered some videos that promote foreign exchange trade as a way of earning money. And although investing can be a way to increase your money, it is never without risk, especially if you are not aware of what you are investing.

The “influential” in social networks can make it appear that currency trade is an easy way to enrich yourself quickly. However, this is not the case. It’s a risky investment formAnd unfortunately, there are scammers who try to benefit people who do not have all the necessary information.

Next, we will explain what the currency trade is, what common scams to take into account and some alternative ways to earn money that are much safer.

What is currency trade?

Forex means currencies. It is the global market for Buy and sell different coins.

When people talk about currency trade, they refer to buying coins and selling them for earnings when the value changes.

Yes ever He bought foreign coins for a vacation, he will know that the value of the coins changes all the time. Just look at the airport exchange office: prices change daily (sometimes more than once).

The value of a certain currency depends on many different factors, such as political events, interest rates, tourism, environmental impacts and more. But remember that the price can fall quickly. This makes the exchange of currencies one of the most risky ways of investment, since prices fluctuate quickly and unpredictably.

Credit: Pavel Ignatov – Shuttersock

Yes, currency trade is completely legal In the United Kingdom. It is supervised by the Financial Behavior Authority (FCA). The Forex market is one of the world’s largest financial markets: governments and banks also participate in it, not only individual investors.

The problem is that, although the market is regulated, there are still people who try to take advantage of others who do not have enough experience or knowledge. We review some of the most common currency trade scams below.

And although currency trade is a legitimate way to invest money, it also has a Many risks. Even if you invest through a regulated corridor, it is easy to lose money. The Forex market is very volatile, which means that the value of the currencies changes very fast, both up and down.

It can give a great loss when trade in Forex. Daily trade is a risky way of investing, although some people on social networks make an easy way to earn a lot of money (spoiler alert, it is not!).

As mentioned above, currency trade is a legitimate way to invest money. Commercial currencies have been made for decades, but that does not necessarily mean that it is the correct way to invest their money.

One of the currency trade professionals is that the market is open 24 hours a day (except weekends) and investments are very liquid. This can be attractive to potential investors.

However, the inconvenience is that the market is incredibly volatile, which does it risky invest money Here.

With the exchange of currencies, someone wins and someone loses. As Andrew Hallam explains in her book, ‘Millionaire Professor‘, for every dollar won in the foreign exchange trade, a dollar is lost elsewhere. This is a key form that differs from investing in actions, where there is an inherent value.

But even if the exchange of currency itself is legitimate, but risky, there are scammers who use Forex to deceive people for money. See the next section, where we explain some of the most common scams and how to monitor them.

Credit: Mehaniq – Shuttersock

A common way for young people and students to be attacked by currency scams is through social networks.

Some people in Tiktok and Instagram make it look like becoming £ 10,000 with Forex is easy and guaranteed, and this is where things get dangerous. If it sounds too good to be true, it is almost always.

Be careful with people on social networks who claim that they can help you become a millionaire through foreign exchange trade. Often, the way these people earn money is Promotion of commercial services, courses and memberships. Most likely, they win more money by promoting these services than with the foreign exchange trade.

Scammers can go to people who do not have enough knowledge of the industry and those who are in a vulnerable position. If you have a student budget and have difficulty paying rent, the promise in an easy and effortless way to earn money can be tempting, but be careful to avoid possible scams.

Investigate long before investing money and consider the lower risk alternatives.

Other common currency trade scams and how to detect them

Here are some other common currency trade scams to take into account:

• Non -regulated runners – If you decide that you want to try the Forex trade, be sure to do it only through a corridor regulated by the FCA. Read the reviews before registering and make sure that the corridor you are treating is legitimate.
• GUARANTEES – No one can guarantee gains when it comes to investing. If someone tells you where and how to invest in Forex promising guaranteed yields, it is almost always a scam.
• Money requests – If someone asks you to send money (or cryptocurrencies) to start investing in Forex, keep clear. Especially if they are pressing you with time limits, there is a risk that you will not see your money again.
• Application download – Before downloading any application for the Forex trade, be sure to read the reviews to verify that it is a legitimate application. Never click on a link that someone sends it to social networks to download something, since it can be used to enter your device and access your data.

Currency trade alternatives

Credit: Ann in the United Kingdom – Shuttersock

Here are lower risk of currency trade:

• Savings account – Instead of putting your money on investments, you could put it in one of the best savings accounts. This is generally a low risk of gaining interest.
• Effective Isa or Lisa – Using an ISA in cash or ISA for life is another way to save money and earn interest, but these accounts allow you to do it without taxes. As we explain in our dedicated guides, there are some restrictions, so investigate before opening an account.
• ISA Actions and Actions – If you are thinking of investing money in the stock market, discover how ISAS actions and actions work. These investment accounts work similar to regular runners, but all their earnings are tax free.

Do you need money now? See our guide on easy ways to earn money.